Facilitating the introduction of Entrepreneurial Enterprises and Angel Investors within a

Professionally Managed Network.





What is an Angel?


An angel investor is an individual who makes direct investments of personal funds into a typically early stage businesses or venture.  In addition to the goal of an outstanding financial return, Angels are often motivated by a desire to give back to their community with the understanding that funding early stage entrepreneurial enterprise creation is critical to the long term health and advancement of the local economy. 


Because the capital is being invested at a risky time in a business venture, the angel investor must be capable of taking a loss of the entire investment, and, as such, most angel investors are high-net-worth individuals.  These individuals are nearly always accredited investors as defined under the Securities Act of 1933.



What is an Angel Network?


An angel network is a formal or informal assemblage of active angel investors who cooperate in some part of the investment process.  Typically, each angel investor maintains complete discretion in which deals they will invest their money while the network pools its time and resources to collaborate in the many stages of the investment process.



What is an Angel Group?


Within the Association, an Angel Group is a subset of Angels that have committed to fund a deal and formed a group to make the investment.



What is a Champion?


A Champion is an Angel who has been matched with an entrepreneurial enterprise whom he (she) believes has an acceptable probability of investment success.  The Champion becomes the spokesperson and sponsor for the entrepreneurial enterprise to the Angel network.



Is membership in The Company restricted?


Yes.  Please see the description of membership requirements in the Membership Agreement and review the entire content of the Membership Agreement.



Why does The Company strive to have over One Hundred (100) Angels in its network?


In our discussions with the Angel Capital Association and while researching the most successful Angel Networks, we have learned that the greatest value an Angel Network creates is from its Knowledge, Experience and Contacts. Though capital is the fuel the entrepreneur needs, it is the Knowledge, Experience and Contacts provided by the Angel Network which drive the probability of an investment becoming a rapidly growing highly profitable company.


We ask all members to target making a minimum of 2 twenty-five thousand dollar ($25,000) investments each year, however they may choose to invest in more than two companies or make larger investments if they wish. By having this target minimum commitment our Angel Network will most likely invest over Five Million dollars ($5,000,000) a year which will attract the best entrepreneurial companies as well as put our Angel Network on the radar of strategic buyers, private equity groups and other later stage exit opportunities. Our objective is to monetize our investments as quickly as possible because we are in this to make a profit.


In addition to the size of capital resources committed, our goal is to have a wide ranging eclectic group of Angel Investors including manufacturers, service providers, builders, doctors, developers, dentists, accountants, programmers, engineers, executive management, lawyers, athletes, restaurateurs, investment advisers, distributors, etc. The mixture and size of this network will give the network diverse knowledge, skills, experience and the third-party contacts necessary to match applicants with excellent champions supporting the overall success of each member's investment portfolio.




How do I learn more about Angel investing?


The Company conducts periodic training programs for new Angels as an intensive introduction to angel investing.  The Company will occasionally recruit speakers on relevant topics as part of the monthly meeting agenda.  Angels also learn from other experienced angel network members.




Is there a maximum amount of money I may invest?


There is no defined maximum amount of investment.



How will investment decisions be made?


You will make your own investment decision based on the criteria you choose.  Each Angel maintains complete discretion regarding which Angel Groups he or she joins.



How are presenting companies selected?


It is the responsibility of the Company staff to market the organization to the community at large and find investable companies and ventures to make presentations.  In addition to this marketing effort, Angels are encouraged to introduce opportunities they feel are worthy of further consideration.



The Company will screen all applicants to determine which companies qualify to be vetted. When the Company finds what it believes to be a suitable candidate, it will conduct the first level of due diligence. The candidates which remain qualified will then be matched with one to four Angels based on the each Angel's bio. The Company will then request that the selected Angels perform the second level of vetting. The Company will provide all documentation it has developed in the first level of due diligence of the potential investment candidate to help the Angels form an opinion regarding the candidate's suitability for further consideration. If the selected Angel feels the candidate is worthy of taking the next step of presenting to the whole membership, that objective is put into motion.  



May I invest in addition to the amount invested by the network?


You may invest additional money providing you give full disclosure to the Angels who invested in the same company.



How is due diligence conducted?


All due diligence performed in the first two stages of vetting before an entrepreneur is scheduled for presentation to the Angel Network will be provided to the Angel Group. After presentation if an Angel Investment Group is formed to pursue an investment than from this point the Angel Investment Group will have a choice regarding how to proceed with due diligence. The first option will be to assign each aspect of the remaining process to various members of the group and handle it internally. The second option is to retain a third party to handle all aspects of the remaining process and contract for the service. The last option will be some combination of the first two options. How each Angel Investment Group chooses to approach this issue will be necessarily dependent on the set of facts faced by the Group and the skill set and resources represented within the Group.



How is the Company/Association run?


The Company will have a board of five advisers. During the first two years the Company President/CEO wishes to appoint two seasoned Angel Investors who are not part of the Angel Group to the board of advisors. The dues paying Angels of the Company during the first two years will elect two Angels to serve on the advisory board and four dues paying Angels in all subsequent years. The President/CEO of the Company will appoint and the remaining one position will be an executive from the Company's management team.


The president/CEO of the Company will be personally responsible for all the day to day business operations of the Company.



Why is the Company using a Board of Advisers rather than a Board of Directors?


The Company uses the Board of Advisers format in order to avoid the typical constraints that surround board members and to eliminate any potential liability issues.  In the interest of complete disclosure for the Association Membership, this format frees the Board Adviser Members to discuss everything that happens in the board meeting with other Angels of the Company.



How is the Company funded?


The Company is a for profit performance based company that is dependent on its membership for annual dues which provide the bulk of its annual operating revenue.  The Company's success will be dependent upon providing sufficient value to the Angel Members that they will continue to renew their Association year after year.  The Company will also sell sponsorships to service providers that support early stage companies to supply additional operating funds.


The Company may also earn revenue by providing services to individual Angel Groups that are investing in deals.  These services will be provided on a consulting fee basis as requested by Angel Groups.  These consulting services will be limited to matters that are outside the scope of the service included in the membership agreement and the membership is free to contract for any required services with outside third parties.



How much does an Associate Membership cost?


Annual Association dues cover the fiscal year January 1 through December 31. Annual Association dues are not prorated. New members who join after July 31 will pay 50% of the annual dues. Membership renewals will be sent out in late October and due on or before December 31. Any Angel with unpaid dues after this date will be required to bring dues current before attending any meeting in the new fiscal year. The Company incurs significant costs to host each dinner meeting, bring in speakers, provide training, build exit relationships, etc, all of which is included in membership dues and is why timely payment is mandatory.


The fiscal year starting January 2012 and ending December 2012 will have annual dues set at six thousand dollars ($6,000) for the year. Association dues are subject to change without notice.



Contact Information:

Office: (407) 674-1925

Email: info@MaxAngelInvestments.com


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